Share capital increase in the subsidiary and the conclusion of loan agreement by the subsidiary

Date of publication: 04.04.2013

Management Board of PROCHEM S.A. announces that on 3 April 2013 the General Meeting of Shareholders of the subsidiary Irydion Sp. z o.o. with its registered office in Warsaw resolved to increase the share capital by amount of PLN 4.5 million through the issuance of 4 500 new shares with a nominal value of PLN 1000 each.

The new shares were subscribed as follows:

4 499 shares at the issue price of PLN 14 996 500 were acquired by Look Finansowanie Inwestycji S.A. with its registered office in Wrocław
1 share at an issue price of PLN 3 500 was acquired by Prochem S.A.

After the increase the share capital of company Irydion Sp. z o.o. amounts to PLN 9 million. The share of PROCHEM S.A. in the capital of Irydion Sp. z o.o. decreased to 50 %. The remaining 50 % of shares is held by Look Finansowanie Inwestycji S.A.

At the same time, on 3 April 2013 loan agreement was signed between Irydion Sp. z o.o. and Look Finansowanie Inwestycji S.A. under which Look Finansowanie Inwestycji S.A. will grant until 30 September 2013 the company Irydion Sp. z o.o. a loan of PLN 15 million.

Deadline for return of the loan – 30 September 2018.

The interest rate does not differ from market conditions. Resources acquired both from the issue of new shares and the loan will be earmarked by Irydion Sp. z o.o. for the start of construction of office and service building under the name Astrum Business Park in Warsaw.